On January 1, 2020, AMI Corporation purchased the non-cash net assets of Milla Ltd. for $8,334,600. Following is the statement of financial position of Milla Ltd. from the company's year-end the previous day:

Milla Ltd.

Statement of Financial Position

As at December 31, 2019

Cash $660,000

Accounts receivable $552,000

Inventory $2,510,000

Property, plant, and equipment (net) $2,100,000

Land $2,570,000

Total $8,392,000

Accounts payable $322,000

Common shares $2,550,000

Retained earnings $5,520,000

Total $8,392,000

As part of the negotiations, AMI and Milla agreed on the following fair values for the items on Milla statement of financial position:

Accounts receivable $550,500

Inventory 2,300,000

Property, plant, and equipment 1,930,000

Land 3,770,000

Accounts payable 311,900

1.) Prepare the journal entry on the books of AMI Corporation to record the purchase of the net assets of Milla Ltd, assuming AMI paid cash for the net assets. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

NOTE: ON PART 1, THERE ARE 8 ENTRIES NOT 7

Account Title and Explanation Debit Credit

2.) Prepare the journal entry on the books of AMI Corporation to record the purchase, assuming that instead of buying the net assets of Milla AMI purchased all of the company's shares, instead. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Title and Explanation Debit Credit